Steel Exchange India Ltd

- Steel Exchange India Limited is planning a rights issue in the next month, aiming to raise up to Rs. 200 crores (Page 7, Page 13). - The rights issue proceeds will partly be used (around Rs. 75 crores) to repay existing debt of Rs. 340 crores (Page 6, Page 7). - The company expects existing shareholders to participate in the rights issue; if not fully subscribed, alternative options will be considered (Page 13). - Besides equity fundraising, the company is working on refinancing high-cost debt (~18.75% interest) with lower-cost debt; a term sheet for 13.25% interest has been received (Page 10). - The refinancing is expected to take effect from Q3 FY26, reducing interest costs and aiding debt reduction (Page 10). - Further fundraising beyond the rights issue may be considered based on market conditions and business needs (Page 7).

- The company is planning an integrated wire complex at Bobbili site, expected around FY27, with an estimated investment of approximately Rs. 100 crores. This will focus on galvanized wires and related products as a downstream activity. - Future capacity expansion at the existing plant is also planned, with a potential to increase capacity by up to 1 million tons (upgrading from 4.4 million tons to 5.4 million tons) with relatively low investment once the company becomes debt-free. - SEIL Infra Logistics Ltd, a new wholly-owned subsidiary incorporated in 2025, aims to operationalize logistics and infrastructure capabilities using surplus land assets, expected to generate revenue from Q4 onwards. - The company is working on a multimodal logistic park using surplus land to generate additional revenues and profits through leasing or joint ventures. - No immediate real estate development by the company, but possible joint development models with share from land parcels.

- For FY26, Steel Exchange India Limited expects revenues between Rs.1,400 crores to Rs.1,500 crores. - EBITDA is projected between Rs.170 crores to Rs.180 crores for FY26. - Capacity utilization is expected to improve, especially with the RINL contract starting December 2025, pushing rebar mill utilization to 85%-90%. - Volumes are anticipated to grow, with a safe bet of around 750,000 metric tons in Q4 FY26. - The company plans to increase capacity gradually from current levels (SMS at 55%, rebar billet at 43%). - The expansion potential includes growing the plant to 1.5 million tons with low investment, post becoming debt-free. - Growth is supported by enhanced institutional demand and infrastructure development in India. - Additional revenue streams expected from SEIL Infra Logistics and monetization of surplus land.

- Steel Exchange India Limited expects revenue for FY26 between Rs.1,400 crores to Rs.1,500 crores. - EBITDA is projected in the range of Rs.170 crores to Rs.180 crores for FY26. - EBITDA per ton is currently around Rs.6,600 and expected to improve with higher capacity utilization and new conversion contracts. - The contract with Rashtriya Ispat Nigam Limited (RINL) for converting 1.2 lakh tons of billets into rebar is expected to raise rebar mill utilization to 85-90% by Q4 FY26, enhancing margins. - Net profit margin showed substantial improvement in Q1 FY26 and is expected to sustain with volume growth and raw material cost control. - Additional revenue streams from SEIL Infra Logistics subsidiary and real estate monetization are anticipated to contribute incremental profits in the near future. - Management aims for debt reduction, potentially leading to better bottom-line performance and EPS growth.

- Steel Exchange India Limited has secured a conversion contract from Rashtriya Ispat Nigam Limited (RINL), Vizag Steel, for converting 1.2 lakh tons of billets into rebar per annum. - This contract is expected to become operational around December 2025. - The RINL order will enhance the utilization of their rebar mill from current levels (~43%) to more than 85%-90%. - This additional contract will bring incremental EBITDA of approximately Rs. 27 crores annually. - No other specific details on the overall order book size or pending orders were disclosed in the call.